High Arctic Overseas Announces 2025 Third Quarter Results

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CALGARY, Alberta, Nov. 28, 2025 (GLOBE NEWSWIRE) — High Arctic ‎Overseas Holdings Corp. (TSXV:HOH) (“High Arctic Overseas” or the “Corporation”) has released its third quarter 2025 financial and operating results. The unaudited condensed interim consolidated financial statements (the “Financial Statements”) and management’s discussion & analysis (“MD&A”) for the quarter ended September 30, 2025, will be available on SEDAR+ at www.sedarplus.ca. All amounts are denominated in United States dollars (“USD”), unless otherwise indicated.

The common shares of the Corporation began trading on the TSXV on August 16, 2024 under the trading symbol HOH.

Mike Maguire, Chief Executive Officer, commented on the Corporation’s third quarter of 2025 financial and operating results:

“High Arctic’s Q3 results reflect reduced current activity in PNG. Our strong working capital and debt-free balance sheet position us well for future opportunities. We’re focused on our diversification strategy, expanding our customer base for equipment rental and manpower services, building out the new Fire Services business and exploring potential acquisitions. We remain optimistic about upcoming PNG major projects and have been fielding increased service enquiries. Our strategy is to stay agile, diversify and remain ready for the next wave of expansion projects.”

2025 THIRD QUARTER HIGHLIGHTS

Adjusted EBITDA loss increased from Q2 2025 $184 to Q3 2025 $741, largely due to the planned wind down of customer project activities in our manpower and rental services businesses and costs associated with establishment of the Fire Services business.
Drilling activities remained consistent with Q2 2025 with continuation of Rig 103 suspension and Rigs 115 and 116 cold stacked.
General & Administrative expenses have increased to $969 in Q3 2025 compared to $693 in Q2 2025 with a number of one-time expenses related to strategy development and corporate services; and
Disciplined cashflow management resulted in exiting Q3 2025 with working capital of over $19 million.

2025 YEAR TO DATE HIGHLIGHTS

Adjusted EBITDA loss for 9 months ending 30 September 2025 of $1,008 against a gain for 9 months ending 30 September 2024 of $4,849 is a reflection of drilling operations being suspended through year to date, 2025.
Revenue and operating margins significantly reduced compared to Q3 2024 due to the higher portion of 2025 revenue activities being manpower rather than equipment, which has a higher operating cost;
Cost to establish the Fire Services business, one off expense for strategy, corporate services and equipment readiness, combined with reduced revenue led to $1,464 of cash used in operations year to date 2025, versus $9,864 of cash generated year to date in 2024, which is reflection of cash generation through drilling activities.

In the above results discussion, the three months ended September 30, 2025 may be referred to as the “quarter” or “Q3 2025” and the comparative three months ended September 30, 2024 may be referred to as “Q3 2024”. References to other quarters may be presented as “QX 20XX” with X/XX being the quarter/year to which the commentary relates. References to the six months ended June 30, 2025, may be referred to as the “first half” or “H1 2025” and the comparative six months ended June 30, 2024 may be referred to as “H1 2024”.

Business strategy

Our business strategy focused on Papua New Guinea is underpinned by the following cornerstones:

Leveraging our core PNG planning and logistics capability to diversify ‎our service offerings;
Deploying idle assets into profitable operations;
Strengthening local content & participation in the PNG finance and investment communities;
An established and efficient corporate structure; and
Seeking opportunities to expand and root the business in the Australasian region.

2025 Strategic Objectives

Relentless focus on safety excellence and quality service delivery;
Reduce general and administrative expenditures;
Grow the manpower business in Papua New Guinea;
Maximize potential participation in future major Papua New Guinea projects; and
Pursue expansionary transactions that increase shareholder value.

Since the Corporation and HAES-Cyprus were both wholly-owned by HWO, the transfer of all of the outstanding ordinary shares of HAES-Cyprus to the Corporation was deemed a common control transaction. The Corporation’s Financial Statements are presented under the continuity of interests basis. Financial and operational results contained within this Press Release present the historic financial position, results of operations and cash flows of HAES-Cyprus for all prior periods up to August 12, 2024, under HWO’s control. The financial position, results of operations and cash flows from April 1, 2024 (the date of incorporation of the Corporation) to August 12, 2024, include both HAES-Cyprus and the Corporation on a combined basis and from August 12, 2024, forward include the results of the Corporation on a consolidated basis upon completion of the Arrangement.

For reporting purposes in the Financial Statements, the MD&A and this Press Release, it is assumed that the Corporation held the PNG business prior to August 12, 2024, and as such, information provided includes the financial and operating results for the three and nine months ended September 30, 2025, including all comparative periods.

RESULTS OVERVIEW

The following is a summary of select financial information of the Corporation:

 
Three months ended Sept 30,
Nine months ended Sept 30,

(thousands of USD except per share amounts)
2025
2024
2025
2024

Operating results:
 
 
 
 

Revenue
1,983
2,891
6,861
21,654

Net income (loss)
(1,330)
(1,421)
(3,077)
1,051

Per share (basic and diluted) (1)(2)
($0.11)
($0.11)
($0.25)
$0.08

Operating margin (3)
321
1,064
1,544
8,376

Operating margin as a % of revenue (3)
16.2%
36.8%
22.5%
38.7%

EBITDA (3)
(741)
(365)
(1,008)
4,846

Per share (basic and diluted) (1)(2)
($0.06)
($0.03)
($0.08)
$0.39

Adjusted EBITDA (3)
(648)
(344)
(508)
4,862

Adjusted EBITDA as a % of revenue (3)
(32.7%)
(11.9%)
(7.4%)
22.5%

Per share (basic and diluted) (1)(2)
($0.05)
($0.03)
($0.04)
$0.39

Operating income (loss) (3)
(1,239)
(1,036)
(3,204)
1,719

Per share (basic and diluted) (1)(2)
($0.10)